Retirals include EPF, Pension, and Grauity. Your company pays these benefits at the time of retirement or exit from the company. Depending on the company, you may get other benefits. Retirals are also called annual components in CTC.
You can check retiral components like provident fund and gratuity in your salary slip.
Retirals Include:
- EPF
- Gratuity
- Health Insurance
- Leave Encashment
- Superannuation
Why Do Companies Provide Retirals?
The main aim of retirals is to provide financial security to employees at the time of their retirement or exit. Companies use retirals as one of the important benefits to attract skilled and loyal employees.
However, some retirals like EPF (Employee Provident Fund) and Gratuity are mandatory if the company is covered under the EPF Act 1952 and the Payment of Gratuity Act 1972, respectively.
Retirals also provide tax benefits to employees. If you withdraw the employee provident fund after 5 years of service, it is tax-free. And pension is always tax-free.
As An Employee, What You Should Know About Retirals:
- Understand the different retirals in your CTC that the company is paying you. You can check those details in your offer letter, appointment letter, or salary slips. If you have any doubts, get clarification from HR or your manager.
- Remember not all retiral benefits are mandatory. For example, gratuity is paid only if you complete 5 years of continuous service in the company. If you leave the company before 5 years, the company doesn’t pay the gratuity.
- In case of emergency situations, you can withdraw partial amounts from retiral benefits like provident fund. You don’t need to wait until your retirement for that.
- Know the withdrawal rules of the retiral benefits, which gives you more confidence about these benefits.
- Ensure you have nominated your loved ones for EPF and gratuity so that in case of any unfortunate events, your family members will get those benefits without much struggle.
Also Read:
- 4.5 CTC in hand salary calculation per month.
- Salary slip formats in Excel, Word, and PDF (Free Download).
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